A Report

On

Planning in Public Administration

Submitted in partial fulfilment of: HUM C351 Public Administration

Prepared by: Prankur Sharma 2009B3A4622P

31 October, 2011 Birla Institute of Technology and Sciences, Pilani

Acknowledgement
A comprehensive report always requires the goodwill, encouragement, guidance and support of many people. I am grateful to our Vice Chancellor Prof. B.N. Jain for all the inspiration and motivation given for this report. I am deeply indebted to Mr. Umesh Dhyani and Mr. B. K. Gupta to give me an opportunity to prepare this report Also I thank him for their unflinching support and guidance. I also acknowledge the consistent cooperation received from the BITS Library staff. The books they provided served as an ideal data source which helped me throughout in the development of this report. At last I express my sincere thanks to all my friends for their constant encouragement, guidance and help rendered whenever necessary. I wish to express my appreciation to all friends who spared a great amount of time in going through the report and providing suggestions and error-free proof reading. It would be impossible to refer in detail to the many persons who have been consulted in the compilation of this work. I may be excused for not naming them individually. Prankur Sharma

Abstract
Planning plays a very crucial role in the developing countries. The need for planning arises on account of the nature, magnitude and complexity of various problems persisting in a system. Planning has several advantages. This report studies planning as a technique in public administration, it meaning, need and types. Also, planning in India has been studied along with the institutions and the steps involved. The problems and limitations of the planning process in India have been identified and analysed and valuable conclusions have been drawn.

Table of Contents
1. Introduction 2. Description of Planning 2.1. Meaning of Planning 2.2. Need for Planning 2.3. Types of Planning 2.3.1. Overall Planning 2.3.2. Limited Planning 2.3.3. Administrative Planning 3. Genesis of Planning In India 4. Planning Machinery in India 4.1. Organisation and Role of the Planning Commission 4.2. Members of the Planning Commission 4.3. Role of Planning Commission 4.4. Internal Organisation 4.5. Committee on Plan Projects 4.6. Programme Evaluation Organisation 4.7. National Development Council (NDC) 5. Planning Process in India 5.1. First Stage 5.2. Second Stage 1 3 3 3 4 4 5 5 7 9 9 10 11 12 15 16 17 19 19 19

5.3. Third Stage 5.4. Fourth Stage 5.5. Fifth Stage 6. Planning at Lower Levels 6.1. State Level Planning 6.2. District Level Planning 6.3. Grass Roots Planning 7. Problems of Centralised Planning 8. Limitations of Planning in India 9. Conclusion 10. References 11. Bibliography

19 19 20 21 21 22 23 24 26 28 29 30

1. Introduction
Planning represents the ethos of the age. The debate as well as the faith in planning moves almost like pendulum from one end to the other. Intellectual origin of planning can be traced back to many sources and circumstances but the primary impetus for planning came from the Soviet experience. The importance of planning was felt during the worldwide economic depression in the 1930s. It also led to prolonged debate on the need and the nature of planning. Many countries in Europe and elsewhere resorted to some kind of planning with an eye on military preparedness. The widespread destruction during World War II in many countries in Europe and elsewhere projected the importance of planning as a tool for reconstruction and the rehabilitation of the devastated economies. After World War II, where many countries in Asia and Africa attained independence, planning was regarded as an important and effective tool for rapid socio-economic development. It was recognised that planning in the developing countries attained a central position of importance because in the developing societies, state has to play a much more activist role in the economy in order to fulfil the expectations of the people. Planning is generally associated with the development of an economy. Since plans attempt to determine how we develop, they affect each and every sphere of the society. The need for planning in India arose because of the complex nature of problems of development. The development tasks of the country had to meet the challenge of backwardness and poverty. India needed excessive resource mobilisation, high rate of investment, technological advancement and institutional overhauling. For all these reasons national economic planning became imperative. In a country like India where the bulk of the means of production are owned by private individuals, planning should be such that it regulates and controls private socio-economic activities that contribute to development and is consistent with the aims and actions of public policy. Planning in
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India aims at ensuring social and economic development for the basic objectives laid down in our Constitution. Indian plans have repeatedly stressed their adherence to democratic planning. They have aimed at increase in production, economic growth, balanced regional development, more employment opportunities, removal of poverty, self-reliance and social justice. To understand the role of planning in India, we must try to familiarise ourselves with the concept of planning in India, institutions engaged in planning, objectives of our plans and the achievements and limitations of Indian planning system.

2. Description of Planning
2.1 Meaning of Planning Planning is preparation for action. Planning is a conscious effort to achieve desired ends. It is a rational method of application of resources for the fulfilment of specific objectives. Planned economy would mean an economic system in which the government controls and regulates production, distribution, prices, etc., through deciding on acts, purposes and strategies for development beforehand. The term planning has been widely defined and in most cases the definition shared the same viewpoint. Dimock defines planning as 'the use of rational design as contrasted with chance, the reaching of a decision before a lines action is taken instead of improving after the action has started'. Millett defines, "Planning is the process of determining the objectives of administrative effort and of devising the means calculated to achieve them". According to Urwick, "Planning is fundamentally an intellectual process, a mental pre-disposition, to do things in an orderly way, to think before acting, and to act in the light of facts rather than guesses. It is the antithesis of speculative tendency." Seckler-Hudson defined it as "the process of devising a basis for a course of future action'" Thus, planning is 'thinking ahead' or thinking before doing. It is an intellectual process of determination of course of action undertaken in a conscious manner. In short, planning is the conscious process of selecting and developing the best course of action to accomplish defined objective. Planning is thus the exercise of foresight and network of action for defined goals. 2.2. Need for Planning The growth of human knowledge and its extending control over the environment made human beings realise the increasing importance of planning in a society.

Planning is no more restricted to communist methodology nor associated with 'totalitarianism and authoritarianism'. The old prejudice that planning is unfit for democratic way of living is fast vanishing. Today planning has become popular, the politicians at the highest level plan a policy manning the future of a nation, or seeking the survival of humanity. Every aspect of governmental action is relating the future of a nation, or seeking the survival of humanity. Every aspect of governmental action is to be planned objectives, policies, organisation, finances, work methods, incentive systems and public relations. Programmes based on well-reasoned priorities are invaluable for such countries as they cannot afford to waste time, people or materia1. Drawing up plans, usually in the form of five year programme& for public expenditures, in particular relating to capital formation, has in many developing countries become the accepted practice under which the responsible government agencies must look ahead, determine their long range objectives and agree upon certain priorities in the light of the probable demands of the various sectors of the economy. The programmes of the individual government agencies are usually coordinated by a central planning office in the light of overall available financial resources. 2.3. Types of Planning As the planning is of continuous process it is impossible to suggest waterlight categories of planning. None of the types of planning are self-contained, they are mere ideal types. Following may be stated as the types of planning: i. ii. iii. Overall Planning Limited Planning Administrative Planning

2.3.1. Overall Planning The overall planning commonly called socio-economic planning is more comprehensive. It is more than laying down a few economic targets here and a few physical targets there. It is an overall effort to achieve an all-round development of the country. This type was first adopted by Stalin in USSR

and being used in Russia since then. Most of the third world countries are adopting this type. Four years and seven year plans are manifestations of this type. 2.3.2. Limited Planning Limited planning does not centralise all the socioeconomic activities at one focal point. The state opting for this type of planning selects the main objectives which the society as a whole considers fundamental. Through proper planning and regulation of the activities of the individuals and group it directs the life and activity of the society in such a way that those objectives are attained. 2.3.3. Administrative Planning Government administrative planning is nothing is but administrative with planning. The

planning

mainly

concerned

administrative

programmes. It seeks to provide a broad framework for action as it defines major objectives, establishes inter-bureau policy and links departmental policy and programmes with the related departments. Its main purpose is to give a detailed shape to the policy plan, to make objectives clearer and more workable. Administrative planning may be divided into four different phases, viz., policy planning, administrative planning, programme planning and operational planning. i. Policy Planning: Policy planning is concerned with developing broad general outlines of government in power. ii. Administrative Planning: According to Pfiffner it seeks 'to provide a broad framework for action by defining major objectives, establishing inter-bureau policy and to a lesser extent, linking departmental policy and programmes with those of related departments'. This policy is formulated by the chief executive in consultations with the

departmental heads to give effect to the policy planning and to make objective clearer and more workable for the public officials. iii. Programme Planning: According to Millett, it is 'concerned with the preparation of the specific purposes to be realised and the procedures to be employed by administrative agencies within the framework of existing public policy'. It is an overall review of the proposed programme to determine the volume of services involved, the resources in man and money needed to provide them, the general procedures required and the organisation structure necessary to use these resources to the best advantage. It is a detailed plan for implementing the programmes in a particular department. iv. Operation Planning: According to Pfiffner, it is 'concerned with the systematic analysis of an authorised programme and determination of the detailed means of carrying it out'. After the objectives have been determined and the means and methods of achieving those objectives have been found, then comes operational planning by the divisional and sectional heads who laydown specific procedures and how those have to be used to save time, accelerate production and increase net output. The different units are assigned specific functions and their performance measured in terms of time, quantity and quality of production and overall product. It is, in fact, a 'workshop-stage' of the programme planning. Besides the above types of planning, several new types of planning have emerged in the recent years known as perspective planning, rolling plan, short range or long-range planning, and district planning or grass root planning.

3. Genesis of Planning In India

India has attempted to bring about rapid economic and social development of the country through a planned effort. Although an awareness of the importance of planning was manifest in the pre-independence era, realistic and ambitious planning on an all-India basis could not be started effectively until India became free in 1947 and its major problems growing out of the partition of the country and the task of unification of the native Indian States were resolved. The first effort at introducing social planning in India was made by an individual noted for his pioneering zeal and breadth of vision, the late Dr. M. Visveswarayya. In 1936 he published an essay underlining the desirability and feasibility of planning for industrialisation of the country. For the formulation, implementation and administration of the plan he had suggested formation of a 60-member advisory body, with political leaders, economists, businessmen, administrators, etc., and a Planning Commission of five to seven members for discharging day-to-day functions. He also recommended the setting up of a development department at the Centre and Economic Councils in the provinces. Though interesting as an intellectual exercise, this could not directly influence any social action or any governmental move. In 1937, soon after the assumption of power in the provinces, the Working Committee of the Indian National Congress initiated planning preliminaries by adopting a resolution which recommended to the Congress Ministry the appointment of a committee of experts to consider urgent and vital problems the solution of which was necessary to any scheme of national reconstruction and social planning. Following this resolution, a Planning Committee was constituted by Subhash Chandra Bose, the then President of the Indian National Congress under the Chairmanship of Jawaharlal Nehru. Later in 1944, the government established a Planning and Development Board and published three private development plans - the Bombay Plan, the Gandhi Plan and the People's Plan. A Planning Advisory Board was also
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constituted in 1946 after the establishment of the interim government headed by Jawaharlal Nehru. These pre-Independence efforts at planning tend to bring out a certain unity of approach to the problems of national reconstruction in as much as each of these plans mooted not only had certain objectives in common but also sought to achieve them through similar means. All the plan proposals explicitly accepted the rapid improvement of the living standards of the people as the central objective of development. The central theme of public policy and philosophy of national planning in India since Independence has been promotion of balanced economic development so as to provide foundations for sustained economic growth; for increasing, opportunities for gainful employment, for promoting greater equality in incomes and wealth and raising living standards and working conditions for the masses. Even the Directive Principles of State Policy carries the same spirit of balanced economic development. The Constitution of India includes the subject of social and economic planning in the concurrent list. The legal basis for national planning for the country as a whole, therefore, has been provided through a parliamentary statute on the subject. The discussions on the setting up of a planning machinery in 1949 had envisaged the establishment of a Planning Commission and the creation of National Economic Council which would work as an organ of intergovernmental cooperation in the economic and social fields. Following the recommendations of the Advisory Planning Board of 1946, the Planning Commission was established by a Cabinet resolution of March 15, 1950. The National Development Council was later constituted in 1952.

4. Planning Machinery in India

The Planning Commission is the machinery for planning at the central level. The Planning Commission is essentially a non-political advisory body which makes recommendations to the government. It has no sanction of its own. Care has been taken to organise it neither as a pure research institute, out of touch with the various political, economic or administrative problems nor as an administrative ministry, which is too closely involved in day-to-day affairs and is prone to lack the perspective and detachment required of a national planning agency. Now we are in the Twelfth Plan process. 4.1. Organisation and Role of the Planning Commission The Planning Commission is a multi-member body and the number of members has varied from time to time. In the 'initial year of its inception, the Commission concentrated mainly on plan formulation. It was composed of only full-time members. The Prime Minister, as Chairman of the. Commission provided the needed close relationship with the Central Government. But over the years the Commission got involved in a number of administrative matters and also gathered to itself certain functions of a purely executive nature. The composition of the Commission underwent a substantial change and a number of Union Ministers were appointed as a part time member of the Commission. The Planning Commission was reconstituted in August 1967 on the lines suggested by the ARC except that the Prime Minister continued to be the Chairman of the Commission and the Union Finance Minister, its part-time member. In addition 'to full-time members, which varies from three to eight, other Ministers of Central Government have also been appointed as Members for certain specific reasons connected with the portfolios. The appointment of Ministerial Members and Full Members varies according to the party, which comes to power at the centre.

4.2. Members of the Planning Commission The composition of the Planning Commission is as follows: Prime Minister - Chairman Deputy Chairman Minister of State (Planning) Three-Eight Full time Members, and Member-Secretary

Structure of the Planning Commission The Planning Commission functions through several divisions and sections, each headed by a senior officer, usually designated as Advisor or Chief or Consultant or Joint Secretary or Joint Advisor. The full time members of the Planning Commission assume responsibility for the day-to-day work of particular divisions, although the Commission functions as a composite body and tenders advice jointly on all-important matters.

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The Prime Minister of India being the Chairman of the Planning Commission ever since its inception has added considerably to the prestige of the Commission and helped it a great deal in its coordinating functions at the political level. 4.3. Role of Planning Commission The Planning Commission has been assigned a lot of functions. i. The Commission makes an assessment of the material, capital and human resources of the country, including technical personnel and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nation's requirements. ii. It formulates a plan for the most effective and balanced utilisation of the country's resources. iii. On a determination of priorities, the Commission defines the stages in which the plan should be carried out and propose the allocation of resources for the due completion of each stage. iv. It indicates the factors which are tending to refund economic development and to determine the condition for the successful execution of the plan. v. It also determines the nature of machinery which would be necessary for securing the successful implementation of each stage of the plan in all its aspects. vi. It appraises from time to time the progress achieved in the execution of each stage of the plan and to recommend the adjustment of policy and measures that such appraisal might show to be necessary.

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vii.

Moreover, it makes such interim or ancillary recommendations as might be appropriate on the prevailing economic conditions, and current policies.

In addition to the above, the Government of-India Allocation of Business Rules, has assigned responsibility to the Planning Commission in respect of: i. ii. iii. iv. v. Public cooperation in national development Hill Area Development Programme Perspective planning Directorate planning, and National Informatics Centre (NIC)

It is, thus, that the Planning Commission was established as a staff agency to prepare national plan for economic development of the country. 4.4. Internal Organisation The Office of the Planning Commission consists of three types of divisions (1) General Division, (2) Subject Division and (3) Services Division. The work of the first two types of divisions is primarily technical, of the third administrative or secretarial. The General Divisions are concerned with certain special aspects of the entire economy. These are: i. Economic Divisions: Financial Resource Division, Development Policy Division, ii. iii. iv. v. International Economics Division and Socio-Economic Research Unit Perspective Planning Division Labour, Employment and Manpower Division Statistics and Surveys Division State Plans Division, including multi-level planning. Border Area Development Programme, Hill Area Development and North Eastern Region (NER) vi. vii. Project Appraisal and Management Division Monitoring and Information Division
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viii. ix.

Plan Coordination Division, and National Informatics, Yojana Bhawan Unit

Among the General Divisions, the perspective Planning Division provides general guidance for work on long-term development which is undertaken in detail in different divisions. Coordination of work within the Planning is undertaken by the Plan Coordination Division. Subject divisions are concerned with certain specified fields of development. Some Subject Divisions are: i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. xv. xvi. xvii. xviii. xix. xx. xxi. xxii. xxiii. Agriculture Division Backward Classes Division Communication & Information Division Development Policy Division Education Division Environment & Forest Division Financial Resources Division Health, Nutrition & Family Welfare Division Housing, Urban Development & Water Supply Division Industry & Minerals Division International Economic Division Labour, Employment and Manpower Division Multi-level Planning Division Monitoring Division Perspective Planning Division Plan Coordination Division Power & Energy Division Programme Evaluation Organisation Project Appraisal & Management Division Rural Development Division Science & Technology Division Social Development & Women's Programme Division Social Welfare Division

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xxiv. xxv. xxvi. xxvii. xxviii. xxix.

State Plans Division Transport Division Village & Small Enterprises Division Water Resources Division Administration & Services Division Other Units Border Area Development Programmes Socio-Economic Research Unit Western Ghat Development

The Subject Divisions of the Planning Commission maintain close contact with their counterparts in the various Ministries and the State Governments. They are responsible for collecting, processing and analysing all relevant information required for the formulation, processing and evaluation of the policies and programmes included in the Plan. Advisory Board on Energy which was functioning as a unit under the Cabinet Secretariat was transferred to the Planning Commission with effect from 1st September 1988. Consequently, a new technical division, viz., 'Energy Policy Division', has been setup in the Planning Commission. The National Informatics Centre, which was earlier under the Department of Electronics, was transferred to the Planning Commission with effect from 14th March 1988. Since then, it has become a part of the Planning Commission. The Computer Services Division, which was earlier functioning under the Advisor (Monitoring and Information), has now been merged with the National Informatics Centre. Apart from research and plan formulating structural units described above, the Planning Commission has Services Division which is concerned with the administration, accounts and general services, required for the commission. The general administration including accounts is under the overall charge of the Secretary, Planning Commission. The Accounts Branch functions with an Internal Finance Advisor and Controller of Accounts who works under the ambit of General Administration.

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4.5. Committee on Plan Projects An analysis of the Second Five Year Plan indicates the traditional view of economy, namely reduction in the staff strength, which has become outmoded in the context of the Plan. The real issue in the plan expenditure requires a great deal of thought and effort in standardising the practices and procedures of execution in order to ensure realistic estimation of costs; to achieve basic economy based on scientific development of the techniques from the inception of the projects; and to set norms and standards for evaluation. It was against such background that the COPP was established in 1956 for exploring the possibility of achieving economy consistent with efficiency in the projects included in the second Plan. It had the Home Minister as Chairman and Ministers for planning and finance and Deputy Chairman, Planning Commission.as members. In addition, the Prime Minister, as Chairman of the National Development Council nominated two Chief Ministers of the States as members of the Committee for each 'class of Projects. The Union Member concerned with a project under investigation was also a member of the Committee. Some of the important functions entrusted to the COPP were to: i. Organise investigation, including inspection in the field of important projects, both at the Centre and in the States, through specially selected teams. ii. Initiate studies with the objectives of evolving a suitable form, of organisation, methods, standards and techniques for achieving economy, avoiding waste and ensuring efficient execution of projects. iii. Promote the development of suitable machinery for continuous efficiency audit in individual projects and in agencies responsible for their execution.

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iv.

Secure the implementation of suggestions made in reports submitted to it and to make the results of studies and investigations generally available.

v.

Undertake such other tasks as the National Development Council may propose for the promotion of economy and efficiency in the execution of the Second Five Year Plan. The COPP, as a separate entity was wound up in 1970.

4.6. Programme Evaluation Organisation Evaluation has been an essential aspect of formulation and execution of development plans and programme since the beginning of the plan process. The Programme Evaluation Organisation was set up in 1952 as an independent organisation working under the general guidance and direction of the Planning Commission. Initially, it was entrusted with the specific task of evaluating the Community Development Programme and other intensive area development schemes. But in recent years the organisational sphere of work and activities has been extended and diversified to cover evaluation studies of Plan/Programmes/Schemes in a variety of sectors, viz., agriculture, cooperation, rural industries, health, family welfare, rural development, public distribution, tribal development, etc. The Programme Evaluation Organisation evaluates projects and

programmes periodically and undertakes ex-post evaluation of a few selected major projects in different sections. The main function of the Programme Evaluation Organisation is to undertake evaluation studies which encompass: i. ii. iii. iv. assessment of programme results, against the stated objectives and targets the measurement of their impact on beneficiaries the impact on the socio-economic structure of the community the delivery of service to the target group

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In addition to this Programme Evaluation Organisation has also been discharging two more functions: i. ii. giving technical advice and guidance to the State Evaluation Organisations, and imparting training to the State Evaluation Personnel.

4.7. National Development Council (NDC) The NDC is headed by the Prime Minister and consists of The Central Ministers, Chief Ministers of the States and Lt. Governors, Administrators of Union Territories and Members of the Planning Commission. It is a nodal body, which considers and approves policies and strategies of development planning. The Secretary of the Planning Commission acts as the Secretary of the Council. From a strictly legal point of view, NDC is essentially an advisory body. Since, it comprises the highest political authority in the country it has assumed an important position. The meetings of NDC are held at least twice a year. The role of the NDC is discussed briefly: i) It acts as a kind of bridge between the Union Government, the Planning Commission and the State Governments. ii) NDC prescribes guidelines for the formulation of National Plan including the assessment of resources for the Plan. iii) NDC considers the National Plan as formulated by the Planning Commission. iv) NDC considers important questions of social and economic policy affecting national development. v) It also reviews the work of the Plan from time to time and recommends such measures as are necessary for achieving the aims and targets set out in the national plan including measures to secure the active participation and cooperation of the people, improve the efficiency of the administrative services, ensure the fullest development of the less advanced regions and sections of the community and, through sacrifice,
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borne equally by all the citizens, build up resources for national development. The NDC gives its advice at various stages of the formulation of the Plan and it is only after its approval has been obtained that a Plan is presented to the Parliament for its consideration. The Council has been largely responsible for giving Indian plan a national character and for ensuring unanimity in approach and uniformity in working.

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5. Planning Process in India

The Constitution of India includes the subject of 'social and economic planning' in the Concurrent List India draws up plans in the form of five year programmes. The formulation of five year plan is a time-consuming and complex process. This process can be divided into five stages. 5.1. First Stage This stage begins three years before the commencement of a new plan. Studies are undertaken by the Planning Commission to examine the state of economy and scrutinise the problems. Tentative conclusions out of this effort are arrived at and a framework of the plan is drawn. This framework is submitted to the central cabinet After this it is placed before the NDC. The NDC indicates the rate of growth and broad priorities to be assumed for the purpose of further work on the plan. 5.2. Second Stage Planning Commission works out general dimensions of the plan in the light of guidelines given by the NDC and a draft memorandum outlining the features of the plan is prepared. 5.3. Third Stage Draft memorandum is placed before the NDC and after NDC's consideration, the work for preparation of draft outline of the plan starts. This draft plan is open for the comments of state and central ministries. After NDC's approval, this plan is circulated for public discussion. It is then considered by Informal Consultative Committee of Parliament and also by Parliament as a whole. 5.4. Fourth Stage Planning Commission holds detailed discussions with central ministries and state governments regarding their plans. Discussions are also held with representatives of major organised industries in the private sector. Planning

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Commission then prepares a paper in which principal features of the issues needing more consideration are outlined. This paper is placed before the NDC and central cabinet for their consideration. Final report on the plan is based on the conclusions reached on this paper. 5.5. Fifth Stage A draft of the final report on the plan is considered by central ministries and state governments and then submitted for approval of the NDC and central cabinet. After their approval it is presented before Parliament for discussion and approval. After the plan is formulated, it is divided into annual plans for convenient implementation and allocation of resources. The plan is implemented by the state governments. Planning Commission and the NDC are not involved in plan implementation. Planning Commission only determines the machinery for proper implementation of plan, it does not by itself carry out the formulated plan. Monitoring and evaluation of plans is done by the Planning Commission and the NDC through Programme Evaluation Organisation and other agencies engaged in appraisal of plans.

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6. Planning at Lower Levels

6.1. State Level Planning Economic development with equity is not only the responsibility of the Planning Commission and the Union Government. The federal democratic nature of our state calls for national economic development. National Development should be a national endeavour involving a large number of parties. Various levels of government are therefore necessarily involved in the formulation and implementation of plans. The Constitution provides for a demarcation of subjects under the central, the state and the concurrent lists. The state governments have clearly demarcated sources of revenue, like sales tax and land revenue. In addition to statutory rights in the transfer of financial resources from the Centre the large area of developmental activity and resource mobilisation is therefore guaranteed to the states by the Constitution. In view of this, national plans cannot be prepared without giving adequate importance to state plans. State plans in fact account for nearly half of the total - public sector plan outlay. They cover developmental activities in the state-list subjects like agriculture, irrigation, power, cooperation, social services and so on. They also involve mobilisation of financial resources at the state level, in addition to flows from the centre, to finance a part of the developmental plans. The success of national planning is therefore crucially dependent on planning at the state level; is still not adequately developed and there is a great deal of difference between states in this matter. The most important aspect of planning that is the technical competence and machinery for planning has to develop further for the states to really take on the task of planned economic development. The State Planning Boards do not yet command adequate respect and are not a critical agency, for planning. Their composition, including the expertise of members and their secretariat, is also a hindrance to their effective functioning. Debureaucratisation of the

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planning process at the state level should be attempted as a first step towards purposeful planning. Together with the development of competent state planning machinery there should be efforts to give greater autonomy to states to plan in areas which come under their purview. This would call for lesser control by the Planning Commission regarding details and also a rationalisation of Centrally Sponsored Schemes. This would also open up the question of transfer of financial resources from the Centre to states and the states own efforts at resource mobilisation. Giving greater responsibility to the states and strengthening their capabilities is perhaps the only way to effective state planning. 6.2. District Level Planning In a vast country like India, with considerable degree of diversity between regions, planning by a sole Central planning agency can even be counterproductive. Therefore, ever since Independence there has been a strong trend in the country in support of democratic decentralisation of the planning process. Broadly, the concept of democratic decentralisation means the involvement of the people at various stages of plan formulation and implementation. Under such a scheme of things planning would have to be done at the Central level, at the state level and at levels below the state, that is at the block and the village levels. It is only then that planning can become truly a national endeavour. But this requires that suitable planning machinery be established at various levels. It also requires that the tasks of planning at the various levels are clearly and appropriately specified and links are established between various levels of planning. Further, since the ability and the power to decide on economic matters is an essential part of planning, the process of democratic decentralisation has as its core the concept of decentralisation of political, administrative and financial powers.

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Though some progress has been made in recent years in building up District Planning Cells further steps towards their development have been retarded due to inadequate decentralisation. 6.3. Grass Roots Planning Although the ideas of 'grass roots planning' and 'planning from below' have their basis in Gandhian thought, attempts at crystallising these ideals into concrete administrative and political structures have been rather tentative in the post-independence period. The ideas of 'decentralised planning', 'planning from below', 'peoples' participation in planning', 'multi-level planning', etc. have been mentioned time and again in the Five Year Plan documents. However, only a few steps have been taken to turn these concepts into reality. In the 1950s the Community Development Programme and the establishment of the Panchayati Raj institutions were perhaps the first, and until now the most comprehensive attempts at putting the idea of grass roots planning into action. However, these attempts failed and by mid1960s agricultural growth through improved technology and government support became the paramount objective. However, the policy of centralised planning with emphasis on growth has thrown up a number of problems. Foremost of these are increasing inequality especially between regions and between rural and urban areas. Centralisation in plan formulation has also alienated large groups of people from the development process while at the same time there has been inadequate use of local resources and specialist manpower. Another major problem area is that of plan implementation, monitoring and project execution. Decentralisation and peoples' participation, it is now increasingly realised, are essential for planning to remove the deficiencies of iniquitous growth, unemployment and tardy implementation. Recent years have therefore witnessed a revival of interest in grass-roots planning.

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7. Problems of Centralised Planning

Ever since 1951, when the First Five Year Plan went into operation, right through the formulation of the Seventh Five Year Plan in recent years, India has been following national policy of central planning for controlled and unified development. This has given rise to a number of problems in administration: 1) Whether planning should come from above or below? 2) To what extent should the society be subject to planning and how the people should be associated in the formulation and execution of plans? 3) What modification should be made in the relationship between the Centre and the States which have distinct powers in a federal constitution so as to make centralised planning effective? 4) Who should constitute the members of the planning body? 5) If the planning body is set up outside the normal executive organisation of the government, as the Planning Commission in this country is, should its advisory services be arranged in the existing organisation or should it have an administration of its own for this purpose? 6) To what extent should the Planning Commission concern itself with the details of the Plan? 7) What should be the Planning Commission's responsibility in reviewing the progress of the Plan and what reports is the Planning Commission entitled to ask from the executive authorities? 8) What is the mechanism for dove-tailing the work of the planning machinery in the states with that of the centre, etc.?

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Although some of these problems have been taken care of in the initial establishment of the Planning Commission and its subsequent reorganisations, it must be confessed that the administrative organisation for planning has grown haphazardly without any systematic examination of these problems. The result is that Planning Commission today is a mammoth organisation, almost 'a parallel government' in the words of Pandit Nehru. It is to be noted that the Planning Commission and the National Development Council are not constitutional bodies. Now we have a constitutionally mandated District Planning Committee in every District, for further reading vide-the planning process

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8. Limitations of Planning in India

Our Five Year Plans have broadly aimed at increase in growth rate, extensive modernisation, establishment of socialistic pattern of society, attainment of self-reliance, upliftment of backward classes, balanced growth, systematic regional development, removal of poverty and promotion of heavy and capital goods industries. It is essential to note that despite over five decades of planning, we have not been able to solve the problems of unemployment, under-employment, rise in prices and poverty. Regional inequalities continue to persist. We have not been able to utilise our manpower resources to the maximum extent and our growth rate has been inadequate. Concentration of economic power has increased. Thus there has been a wide gap between targets and achievements. These problems can be attributed to several limitations in our planning process. Administrative Reforms Commission (ARC) in its Report on the Machinery for Planning (1968) noted that there was a lack of proper coordination between the Planning Commission and the private sector. Private sector is only involved at the time of plan formulation, even here the consultations between the two are held very rarely. The ARC criticised the functioning of Central Advisory Council on industries and various Development Councils which have been created by the government for consultations with the industrial sector. It noted that these councils suffer from lack of proper leadership and technical support and thus have been generally ineffective. The Planning agencies also suffer from lack of trained personnel with requisite calibre and experience. There is lack of coordination between the related sectors of economy at the time of plan formulation and implementation. Moreover, implementation of the plans has been rather inadequate. While formulating plans, the practicability of the schemes must be kept in view. Proper attention has to be paid to agencies and people involved in implementation and evaluation of plans, and a proper feedback mechanism has also to be established.
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Economic development alone will never lead to overall development of the country, it is, therefore, imperative to bring about structural and institutional changes in the society. Usually it has been found that there is an absence of realism in planning. Though agricultural production has increased, process of land reforms has been very slow; the small and landless labourers continue to live in poverty. Planning in India is not geared towards undertaking continuous and scientific investigation of social obstacles such as the kinship and hereditary relations based on caste system, which come in the way of economic reforms and development. Financial incentives to reduce backwardness are not enough. Certain non-economic, political and social factors have to be kept in mind. Our plans have not been able to adhere to time schedules; as a result there have been cost overruns. The process of execution of plans is so slow that the financial outlays for plans become insufficient after a certain period of time. Expenditure increases because with the passage of time the prices go up. There is no emphasis on sense of urgency in plan implementation and evaluation. Supervision of plans at all the levels has been ineffective. Plan execution and evaluation is marked with red tape and wastage of resources. Regional and Area Planning in the strict sense of the term has never been introduced in India. Planning in India has been sectoral. Plans at the state, district, block and village levels have just been mere break-ups of sectoral plans. Planning at the grassroots level is very weak. The district, block and village bodies merely collect data for the state and central governments. No full-fledged planning is done at these levels. Usually the policies are handed over from above and people at the local levels are required to fill in this framework. Participation of people and voluntary agencies in planning has also been quite inadequate.

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9. Conclusion
The importance and meaning of planning and how it has evolved in India along with the organisation and role of the Planning Commission has also been analysed. With NDC playing an important role, we have also seen that since India has opted for a centralised planning, she is faced with several administrative problems. Many of these problems have been tackled with. Though our planning process is facing several problems, the situation is not all that grim. We have been able to maintain a moderate growth rate. There has been a growth of infrastructure and basic industries. We are no longer dependent on food imports. Education, social services and human capital has developed and expanded to some extent. Domestic investment has increased. There has been development of economic infrastructure, energy resources, irrigation works and transport facilities. Industrialisation has been quite impressive. There has been a diversification and expansion of India's industrial capacity with public sector playing a leading role. Indigenous production of consumer items has also gone up. Proper emphasis on administrative research and evaluation of plans, simplification of procedures of work to avoid delay and reduce costs, better coordination between various sectors of economy on interconnected tasks, better trained personnel and development of grassroots planning can remove the bottlenecks confronting the planning system in India. No effective planning can be possible without people's participation. People have to be not just the goals but also the means of development strategy. People and voluntary agencies have to be involved in plan formulation and decision-making, implementation of planned activities, distribution of benefits of development and monitoring and evaluation of plans.

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10. References
Prasad, Kamta, 1984, Planning and Its Implementation; Indian Institute of Public Administration, New Delhi Agrawal, A. N., 1986, Indian Economy: Problems of Development and Planning; Wiley Eastern, New Delhi. Sarup, Anand and S. Bramhe, 1990, Planning for the Millions; Wiley Eastern, New Delhi Jain, R. B., 1976, Contemporary Issues in Indian Administration; Vishal Publications, Delhi Uppal, J.S., 1984, Indian Economic. Planning; Macmillan, Delhi Sinha, R. K., 1986, Economic Policy and Planning in India; Deep and Deep, New Delhi. Chanda, A., 1968, Indian Administration; George Allen and Unwin Ltd., London Divekar, V.D., 1978, The Planning Process in India Polity; Popular Prakashan, Mumbai Planning Commission, 1975, The Planning Process; Government of India, Delhi

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11. Bibliography
Dubhashi, P.R., 1976, Economics, Planning and Public Administration; Somiya Publications Private Limited, Bombay Krishnamachari, V.T., 1962, Fundamentals of Planning in India; Orient Longmans, Bombay Paranjape, H.K. 1970, The Reorganised Planning Commission: A Study in the Implementation of Administrative Reforms; Indian Institute of Public Administration, New Delhi Prakasha Rao, V.L.S., 1963, Regional Planning; Indian Statistical Institute, Calcutta Avasthi, A. & Maheshwari, S. R., 1992-93, Public Administration; Laxminarain Agarwal, Agra Tyagi A.R., 1987, Public Administration (Principles & Practice); Atma Ram & Sons, Delhi Sharma, M.P., 2004, Public Administration in Theory and Practice.; Kitab Mahal, Allahabad Paranjape, H .K. 1964, The Planning Commission : A Descriptive Account; Indian lnstitute of Public Administration, New Delhi

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